Marshall, 51, filed the Chapter 7 bankruptcy last month in federal bankruptcy court in Denver, citing $3.9 million in debts stemming from his developments.
In the filing, he declares that he has $265,000 in assets, most of it from a 2005 loan on a four-bedroom home in northwest Colorado Springs that was sold in July. Two banks are disputing his right to proceeds from the sale.
Under Chapter 7, a court-appointed trustee will sell his remaining assets to repay about a half dozen creditors. The filing says his other assets include about $15,000 in household goods and furnishings, clothing and office equipment.
Marshall still faces six theft and racketeering charges in connection with allegations that he diverted $1 million in grants and city funds from a $42.3 million deal to keep the USOC headquarters in the Springs. The charges were dismissed in 2012 by 4th Judicial District Judge Barney Iuppa, but were reinstated in April by the Colorado Court of Appeals when it overturned Iuppa’s ruling. Marshall’s lawyers appealed the reinstatement to the Colorado Supreme Court, which has yet to decide whether it will accept the case.
In a separate case in 2012, jurors acquitted Marshall of several charges, including one that he defrauded 11 investors of $3.1 million on proposed or completed development projects in El Paso County.
Marshall was one of the city’s most prominent developers and was selected in 2008 to convert a former furniture store into the USOC headquarters building, renovate a former Colorado Springs Utilities building into a home for Olympic sporting organizations and renovate and expand the Olympic Training Center. His LandCo Equity Partners eventually lost most of its properties in foreclosure or turned them over to lenders and has been inactive for five years, according to the Colorado Secretary of State’s Office.
Marshall’s attorney, Lee Kutner of Denver, said Wednesday that even through Marshall resolved most of his debts, he had “too many guaranteed debts that he couldn’t resolve.”
According to the filing, Marshall’s debts include a $1 million judgment from First Citizens Bank of Raleigh, N.C., which took over the failed United Western Bank in Denver that had financed the USOC building renovation; a $1 million loan from BVR LLC, which received a note from Marshall when it sold him property; an $855,000 loan from JBS Enterprises, a company headed by Classic Cos. founder Jeff Smith; and a $45,000 judgment from Peoples Bank of Colorado Springs.
A meeting of Marshall’s creditors is scheduled for 9:30 a.m. March 23 in the Colorado Springs Federal Building and Courthouse, 212 N. Wahsatch Ave.
Marshall, who said in the filing that he is self-employed, and his wife live in a home leased from Classic Homes.
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